Decision in brief: Nova Tech Ltd, Enforcement Proceeding, Sanctions and Costs, December 3, 2024

In an earlier decision, the Tribunal decided that Nova Tech violated Ontario securities law by selling securities without being registered to do so and without having filed a prospectus for those securities. A prospectus is a document that gives investors information about the investment. Nova Tech also continued to accept money from investors despite a Tribunal order prohibiting them from doing so. Cynthia Petion, Nova Tech’s founder, sole director and CEO, was responsible for Nova Tech’s actions.

In this decision, the Tribunal decided what sanctions and costs should be ordered against Nova Tech and Petion for their misconduct.

The Tribunal decided that Nova Tech and Petion should be permanently banned from participating in Ontario’s capital markets. Their misconduct was egregious. They denied Ontario investors important protections under Ontario securities law and they flagrantly ignored the Tribunal’s order prohibiting them from continuing to accept money from investors.

The Tribunal decided that Nova Tech and Petion must jointly pay an administrative penalty of $2.5 million. They must also jointly disgorge (give up to the Commission) $31,000. This was the only amount the Commission could prove was taken from Ontario investors because of the respondents’ refusal to participate in the proceeding. Finally, the Tribunal decided that the respondents must jointly pay costs to the Commission of $193,333.52.